Issue link: http://winesandvines.uberflip.com/i/62522
DATA CENTER High-Priced Wines Lead Retail Growth Retail wine sales continued to hum along in October, as revenue from domestic table wine for four-weeks ending Oct. 30 hit $358 million and grew 8% over the similar period last year. Moreover, wines priced at $20-plus practically shouted as they rose 45% for the recent four weeks and 28% year to date in dollars. This price segment is the most expensive category that Symphony IRI, the Chicago-based market research firm, distinguishes in its monthly reporting on wine sales at major food and drug stores. Domestic wines at $20-plus have accounted for just 3% of the market so far this year, according to SIRI, but they are the lifeblood of thousands of small, high-quality wineries across the country. Sales in this price segment dropped notoriously, especially in restaurants, after the banking crisis three years ago, but they have come back dramatically at large retailers. Bottle price decreases The higher sales numbers at $20-plus did come with an average bottle price reduction of 71 cents year to date as well as a slower volume increase than the dollar sales increase. That trend was even more obvious in the four-week October 30 data: The average price change per 750ml was $1.72. But with $15 million in dollar sales in October and $145 million in dollar sales year to date, it’s unlikely that many are complaining. Domestic wine’s share of the market edged up slightly in October, reaching 79% in dollars compared to 78% for the year to date. Imports, while slowly losing market share, did grow by 2% in sales for the recent four weeks. Australia held the largest market share of any import country but saw its dollar sales slip 4%. No. 2 Italy grew 4%, while No. 3 Chile dropped 6% and No. 4 France stayed flat. Blush wines fall Red table wines stayed ahead of white and blush wines for the year to date from all origins, with $2.4 billion in sales for red, $2.2 billion for white and $301 million for blush. Reds gained 6% over the same period last year and whites gained 7% while blush wines fell 7%. As we reported last month, Chardonnay is the leading varietal category as tallied by SIRI, and it is running 3% higher than last year to date. Cabernet Sauvignon is next in market share and grew 7% through October. —Jim Gordon